Xiaomi overtakes Apple as the world’s No. 2 phone maker, says Canalys

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(Bloomberg) — Xiaomi Corp. became the world’s second-largest smartphone maker over the past quarter after an 83% jump in shipments, according to Canalys’ preliminary estimates.

This is the first occasion that Xiaomi, the Chinese manufacturer of everything from rice cookers to gaming monitors, has broken into first and second place, historically dominated by Samsung Electronics and Apple Inc. It was 17% and Apple 14%, according to data from the research firm. Xiaomi shares rose 4.1% on Friday, the best performer on the Hang Seng benchmark in Hong Kong.

Huawei Technologies held the rating briefly, until sanctions cut it from supply of core chips last year. Its withdrawal from the highly competitive smartphone market has prompted other Chinese vendors to spend aggressively on new devices and upgrades. Xiaomi has been particularly active, launching two flagship devices during the first four months of the year. The Mi 11 Ultra features one of the largest camera sensors in a smartphone to date, underlining the company’s ambition to move up to the premium pricing range.

“Compared to Samsung and Apple, the average selling price is about 40% and 75% cheaper, respectively,” said Ben Stanton, Canalys Research Director. “So the main priority for Xiaomi this year is to increase sales of its high-end devices, such as the Mi 11 Ultra. But it will be a tough battle, as Oppo and Vivo share the same goal, and both are willing to spend huge amounts on online marketing to build their brand in a way Xiaomi doesn’t do it.”

Read more: China drives phone market recovery as Huawei exits top 5

Canalys said expansion abroad has been the biggest driver of Xiaomi’s growth, with the company increasing shipments by more than 300% in Latin America, 150% across Africa and 50% in Western Europe. The Mi device maker spent the first half of the year vying for the title of largest smartphone maker in China with rivals Oppo and Vivo, both of whom have roughly equal market share.

The story continues

The second quarter is traditionally the quietest period for Apple and Samsung as they both prepare to launch a new phone in the following months. The iPhone maker has asked suppliers to build up to 90 million next-generation iPhones this year, a sharp increase from 2020 iPhone shipments, Bloomberg reported earlier this week.

(Updates with Xiaomi’s posts in the second paragraph.)

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